GOVERNMENT OF KARNATAKA INITIATIVEkarnatakatourism.org/policy/cruise_tourism_karnataka.pdfCruise Tourism in Karnataka GOVERNMENT OF KARNATAKA INITIATIVE 2 Table of contents 1. Introduction

Detailed Project Report

DETAILED PROJECT REPORT

GOVERNMENT OF KARNATAKA INITIATIVE

CRUISE TOURISM, KARNATAKA

TOURISM PROJECTS FOR INVESTMENT

OPPORTUNITIES

INVEST KARNATAKA 2016

January 2016

Cruise Tourism in Karnataka


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Table of contents

1. Introduction ....................................................................................................... 6

1.1 Background ............................................................................................................................. 6

1.2 Objectives................................................................................................................................ 7

1.3 Approach and Methodology ................................................................................................... 7

2. Regional Profile ................................................................................................. 9

3. Cruise Tourism in India ................................................................................ 10

2.1 Features of Cruise Tourism ................................................................................................... 10

2.2 Cruise Tourism Industry of India ........................................................................................... 10

2.3 Cruise Tourism in Karnataka ................................................................................................. 12

2.4 Need of the Project ............................................................................................................... 14

4. Status of ports in Karnataka ....................................................................... 15

4.1 Ports in Karnataka ................................................................................................................. 15

4.2 Details of Karnataka Ports ..................................................................................................... 16

4.3 Inference ............................................................................................................................... 25

5. Proposed Cruise Circuits for Coastal Karnataka ................................. 26

5.1 Development Options ........................................................................................................... 26

5.2 Proposed Tourist Circuit ....................................................................................................... 27

6. Traffic Estimations ......................................................................................... 31

6.1 Karnataka Potential ............................................................................................................... 31

8. Project Cost ....................................................................................................... 39

8.1 Financial Model ..................................................................................................................... 39

9. Implementation Framework ...................................................................... 46

9.1 Project Structure ................................................................................................................... 46

10. Inference ........................................................................................................... 51

10.1 SWOT Analysis ....................................................................................................................... 51

10.2 Issues and concerns .............................................................................................................. 53

10.3 Guidelines ............................................................................................................................. 55

11. Annexure 1: Cruise circuits for option 1 – phase I .............................. 56

12. Annexure 2: Proposed Cruise Ship Specifications............................... 62

13. Annexure: 3 Cruise Circuits (Phase II) .................................................... 72



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14. Annexure: 4 Activities related to Port Call and Ships at Berth ....... 75

15. Annexure: 5 Operational Issues with Louis Cruise Lines ................. 77



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List of Tables

Table 1: Name of the Ports in Karnataka ................................................................................................ 9

Table 2: Climate profile of Chickmagalur and Shimoga districts ............................................................ 9

Table 4: Cruise tourists in India over the years ..................................................................................... 10

Table 5: Cruise circuits in India ............................................................................................................. 11

Table 6: Total tourist arrivals in India and new Mangalore Port .......................................................... 12

Table 7: Cruise accommodating capacity in Karnataka Ports ............................................................... 15

Table 8: Facilities at Mangalore Port .................................................................................................... 17

Table 9: Facilities at New Mangalore Port ............................................................................................ 18

Table 10: Facilities at Malpe Port .......................................................................................................... 19

Table 11: Facilities available in Karwar Port ......................................................................................... 20

Table 12: Facilities at Tadri Port ............................................................................................................ 23

Table 13: Facilities in Belekeri Port ....................................................................................................... 25

Table 14: Inputs for traffic estimations ................................................................................................. 31

Table 15: Karnataka cruise potential from International arrivals ......................................................... 31

Table 16: Karnataka cruise tourism potential from domestic tourist footfalls .................................... 32

Table 17: Comparison of some of the new tourism concept ................................................................ 33

Table 18: Analysis of the comparison of similar luxury tourism projects ............................................. 36

Table 19: Estimating the capacity ......................................................................................................... 36

Table 20: Options for operating cruise circuits ..................................................................................... 37

Table 21: Details of a cruise ship under consideration for a project .................................................... 40

Table 22: Revenue Estimation .............................................................................................................. 41

Table 23: Number of trips of cruise ship in the initial years ................................................................. 41

Table 24: Expected number of passengers from the trips of cruise ship in the initial years ............... 42

Table 25: Estimated revenue for the cruise ship .................................................................................. 42

Table 26: NMPT charges for the cruise ................................................................................................. 43

Table 27: O & M expenses for initial years ........................................................................................... 44

Table 28: Key financial indicators ......................................................................................................... 45

Table 29: SWOT analysis for cruise tourism in Karnataka .................................................................... 51

Table 30: Previous International Cruise line operators in India ........................................................... 53

Table 31: Details of Cruise .................................................................................................................... 68

Table 32: Proposed National Cruise Circuit in Phase II ......................................................................... 72

Table 33: Itinerary for Mangalore-Cochin- Male- Lakshadweep-Mangalore Circuit ............................ 72

Table 34: Circuit Itinerary for Mangalore- Goa- Lakshdweep- Mangalore Circuit ................................ 73

Table 35: Proposed International Cruise Circuits in Phase II ................................................................ 73

Table 36: Circuit Itinerary for Mangalore-Goa-Mumbai-Dubai Circuit ................................................. 73

Table 37: Circuit Itinerary for Mangalore-Cochin-Colombo-Mangalore Circuit ................................... 74



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List of Figures

Figure 1: Approach to the project ........................................................................................................... 8

Figure 2: Coastal Karnataka .................................................................................................................... 9

Figure 5: View of a luxury cruise ship operational in India ................................................................... 12

Figure 6: Luxury cruise vessel AIDA Cara .............................................................................................. 13

Figure 7: New Mangalore Fort (Source: www.newmangalore-port.com ............................................. 17

Figure 8: Malpe Port ............................................................................................................................. 19

Figure 9: Karwar port ............................................................................................................................ 20

Figure 10: Hangarkatta Port .................................................................................................................. 21

Figure 11: Kundapur Port ...................................................................................................................... 22

Figure 12: Honawar Port ....................................................................................................................... 22

Figure 13: Tadri Port ............................................................................................................................. 23

Figure 14: Belekeri Port......................................................................................................................... 24

Figure 15: Cruise circuit in coastal Karnataka (Option 1) ...................................................................... 28

Figure 16: Proposed cruise circuit in Coastal Karnataka (Option 2) ..................................................... 30

Figure 17: Financial model for operation a cruise ship ......................................................................... 39

Figure 18: Sharing of responsibilities between GoK and Private Operator ......................................... 47



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1. Introduction

1.1 Background

Department of Tourism (DoT) Government of Karnataka (GoK) is determined to boost

the tourism industry in the state. The Tourism Sector has been identified as one of the

key sectors propelling the country’s economic growth. Karnataka State has been

ranked as the 3rd preferred destination among domestic tourists in the tourism sector.

Karnataka’s thriving economy has created many opportunities across the State in the

last decade.

For GoK, the tourism sector constitutes a real priority because it is an important sector

for the generation of employment, therefore various initiatives are been undertaken

with the involvement of all stakeholders, both public and private, that will foster a

more favourable environment for the development and consolidation of the tourism

sector. One of the initiatives in this direction is the formulation of Karnataka Tourism

Policy for 2015-20.

GoK intends to encourage the investors to invest in the tourism sector. A host of

incentives and concessions are provided to the investors in tourism sector, in the New

Tourism Policy for 2015-20. A large emphasize has been laid on enhancing hospitality

services and standards, promoting innovative developments and rejuvenation of older

tourist attractions, with the aim of offering visitors the experience that will

commensurate with higher expectations.

With this background, DoT has prepared a shelf of Detailed Project Reports (DPRs) of

potential tourism projects which could be undertaken for development along with

collaboration with the Private sector. Cruise Tourism in Karnataka is one of the

projects identified for development.

Cruise Tourism is a fast growing sector globally, both in terms of fleet and passengers

carried. The consumer trends indicate that the number of Indians opting for

international cruises is also increasing. The number of outbound travelers, who are

visiting South-East Asia and the Far-East, is also rising. Experience in the Caribbean,

Latin American and South-East Asian countries indicates that huge amount of foreign

exchange can be earned by providing the right policy environment and infrastructure

for the growth of cruise tourism.

Karnataka, with its vast and beautiful coastline, virgin forests and undisturbed idyllic

islands, long historical and cultural tradition of architecture, theatre and performing

arts, could be a high potential tourist destination for cruise tourists. The promotion of

cruise tourism in Karnataka may require focus on developing the necessary physical



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infrastructure at the identified ports as well as developing the itineraries and tourist

circuits to maximize the potential of coastal Karnataka as a tourist destination. The

exotic tourist locales, improved port connectivity and Government support are the key

growth drivers that are likely to promote Karnataka as an attractive cruise destination.

With this background, the Department of Tourism, Government of Karnataka intends to develop cruise tourism in Karnataka along its coastal belt and wants to explore the possibility of doing the same on a Public Private Partnership framework.

1.2 Objectives

GoK intends to develop cruise tourism in Karnataka to:

i. Attract more footfalls, and provide a unique and wholesome experience to the

tourists.

ii. Encourage entrepreneurship and livelihood opportunities for the locals.

iii. Encourage and promote Private Sector Participation in the development of

tourism sector.

1.3 Approach and Methodology

The Approach to the entire assignment is depicted in the flow chart below. The

detailed analysis and inferences drawn at each stage have been covered in detail in

the each of the following sections.



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Figure 1: Approach to the project

The trends as presented in this report are based on rapid market survey and interactions with key players namely government stakeholders and cruise operators. These are indicative of the situations prevalent at the time of conducting the study.

Development of Cruise Tourism in

Karnataka

Study of:

• Present status of port linkages, port infrastructure.

• Traffic Analysis and comparison with other tourism concepts

Study of:

• Stakeholder’s involved and Implementation Framework

• PPP in Cruise Tourism

Viability of development of cruise tourism

under a PPP Framework including

assessment of investments and means of

financing



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2. Regional Profile

Karnataka's coastline called Karavali,

stretches 320 km in length and 48 – 64 km

wide between Mangalore in Dakshina Kannada

district and Karwar in Uttara Kannada district.

The coastline of Karnataka has been along the

eastern shore of Arabian Sea. Kanara coast is

located between 12o 27’ to 15o 32’ N latitude and

74o05’ to 75o45’ E longitude, its approximate

geographic area is 18,732 km2. Amongst these,

North Kanara has 160 km of coastline while 98

km is in Udupi and the rest in South Kanara.

Karnataka has one major and ten minor ports in

this coastal belt. The names of the ports are

enlisted in table 1 below:

The table below highlights the names of the ports in coastal Karnataka: Table 1: Name of the Ports in Karnataka

The Tropical Monsoon climate covers the entire coastal belt and adjoining areas. The

climate in this region is hot with excessive rainfall during the monsoon season i.e.,

June to September. The following table highlights the climate profile of the region:

Table 2: Climate profile of Chickmagalur and Shimoga districts

Sl. No. Name of the ports

1. Old Mangalore Port

2. Belekeri Port

3. Tadri Port

4. Honnavar port

5. Bhatkal Port

6. Kundapura Port

7. Hangarakatta Port

8. Maple Port

9. Padubidri Port

Climate Duration Temperatures

Summer Late March – June 30⁰ C to 35⁰ C

Rainy Early July – September 28⁰ C to 22⁰C

Winter October – Late February 20⁰ C to 15⁰ C

Figure 2: Coastal Karnataka



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3. Cruise Tourism in India

2.1 Features of Cruise Tourism

Cruise Tourism is a distinctive tourism experience which is an amalgamation of luxury,

comfort with state-of-the art facilities on and off board a cruise liner. The unique

features of cruise tourism can be summarized as follows:

Superior service quality: Cruises provide exclusive hospitality services and facilities

which include pool, Jacuzzi, sauna, gym, on-board lectures, card rooms, an unending

variety of organized games and contests, lounges, nightclubs, movies, dancing and

more.

Home away from Home feel: state-of-the-art well furnished rooms well equipped

with telecommunications equipment, including in cabin ship-to-shore phones.

Multiple Destination visits: Cruising offers multiple destinations, without the hassles

of packing and unpacking. Itineraries include visits to one or more ports of call

(depending on length of cruise).

This feature of offering visits to various destinations by traveling through sea-route

makes cruise tourism attractive and fascinating. In Indian Scenario, the experience of

the ship travel is unique and attractive than the land destination. Hence for a cruise to

be successful and attract the local as well as foreign tourists, the complete package

should include a floating resort feel on the ship combined with the array of exotic

destinations.

2.2 Cruise Tourism Industry of India

While the Cruise Tourism in India has been growing, over the past decade, there have been concerns on the absence of an affordable cruise along the Indian coastline, high costs; fewer choices meant that the cruise tourism is still not the favorite of the masses. Table 3: Cruise tourists in India over the years

Year Cruise Tourists

(in millions)

Increase in Cruise

Tourists (%)

International

Arrivals (in

millions)

Cruise Tourists as a

% of International

Arrivals

2000-01 0.041 70.83 2.54 1.61

2001-02 0.019 -53.66 2.38 0.8

2002-03 0.012 -36.84 2.73 0.44



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Year Cruise Tourists

(in millions)

Increase in Cruise

Tourists (%)

International

Arrivals (in

millions)

Cruise Tourists as a

% of International

Arrivals

2003-04 0.025 108.33 3.36 0.74

2004-05 0.022 -12 3.73 0.59

Indian ports have been able to attract substantial number of cruise vessels and tourists in recent years.

A percentage of International tourists arriving into a country are generally interested in undertaking short exploration cruises in and around the country as part of their overall travel plans. However, due to practically non-availability of facilities for cruise activity in India, this segment has been untapped as yet.

India has over 7,500 km of coastline with places of great interest for the cruise guest. Government of India, as part of its Cruise Tourism development initiatives has identified 6 Indian ports to be developed as ‘world class cruise terminals’ and to be promoted as ‘integrated Indian cruise circuit.’ These identified Ports include Mumbai, Goa, Cochin, New Mangalore, Tuticorin and Chennai. Mangalore port lies in Karnataka with Goa and Cochin in the vicinity.

The table below highlights the existing cruise circuits in India:

Table 4: Cruise circuits in India

Domestic Cruise Circuits Days

Goa-Lakshadweep-Cochin-Colombo-Trivandrum-Lakshadweep-Goa 14

Cochin-Colombo-Trivandrum-Lakshadweep-Goa 8

Mumbai - Kadmat - Goa - Mumbai 4

Mumbai - Kochi - Goa - Mumbai 4

Cochin-Male-Cochin 3

Mumbai - Goa - Mumbai (SuperStar Libra Tour Package & Rates) 2

Cochin-Lakshdweep 2

Goa-Lakshadweep-Cochin 3

Cochin-Colombo-Cochin 3



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2.3 Cruise Tourism in Karnataka

Presently Mangalore port shares a small portion of cruise tourists compared to other ports as cruise tourism has not been promoted in Karnataka. At the same time, Mangalore port has the technical competence, locational advantage as well as good inland and air connectivity to be showcased as a call port for Karnataka.

In the past couple of years, Luxury cruise vessels like M.V. Nautica with more than 600

passengers on board and M.V. Astoria, a German passenger ship with 299 passengers

on board, have been calling at Mangalore port.

The following table summarises the features of the project site:

Table 5: Total tourist arrivals in India and new Mangalore Port

Period Total Tourists NEW MANGLORE

Vessels Tourists

1996-97 20871 - -

1997-98 20871 - -

1998-99 16854 - -

1999-2000 23992 - -

2000-01 40827 14 3639

Figure 3: View of a luxury cruise ship operational in India



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Period Total Tourists NEW MANGLORE

2001-02 19318 5 1032

2002-03 12424 1 291

2003-04 24908 n/a n/a

2004-05 21824 n/a n/a

In October 2009, the luxury cruise vessel AIDA Cara, with 1,135 passengers and 376

crew on board, called at the New Mangalore Port.

Figure 4: Luxury cruise vessel AIDA Cara

Presently the domestic cruises do not capture the coastal Karnataka. Most of the

cruises visiting Mangalore port are from Goa or Kochi.

There is a potential in creating a circuit for coastal Karnataka which can attract local

as well as foreign tourists. The circuit can be of shorter duration and affordable to

capture the Indian market. This circuit can be extended to other states as a second

phase. The subsequent chapters explore the possibility of designing shorter circuits

for coastal Karnataka and the possibility of implementing the same on the PPP

framework.



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2.4 Need of the Project

Cruise Tourism is not promoted in Karnataka to its maximum potential.

Ports with technical competence, locational advantage & good air and inland

connectivity.

Need to boost up the Tourism Industry in Karnataka.

Increased Affordability & quest for experiencing new things.

Expected Increase in Tourist Footfalls through developing world class tourist

attractions.

Encourage livelihood opportunities for the local population in various ways.



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4. Status of ports in Karnataka

4.1 Ports in Karnataka

The 320-kms long coastline of Karnataka has 10 minor ports and a major port. There

are several beaches along the coastline which are gradually becoming hot tourist

destinations.

This chapter covers analysis on the connectivity of ports/ beaches along the coastline

of Karnataka, and study of existing infrastructure at these ports and beaches for the

development of cruise tourism.

Karnataka has ten minor ports including Karwar in the north and old Mangalore in the

south. Out of these ten minor ports, Karwar is the only all weather port while the

other nine are the riverine anchorage lighterage ports. The state also has all weather

New Mangalore Port which is a major port of India. The maximum draft of ships and

the maximum length of cruise ships that can be accommodated at these ports are

furnished in the following table:

Table 6: Cruise accommodating capacity in Karnataka Ports

No Minor Ports Maximum Length of Cruise

Ship possible to

accommodate (m)

Maximum Draft of Ship

possible (m)

1 Karwar Port 355 5.5

2 Belekeri Port 20 2.5

3 Tadri Port 8 (Jetty) 1.5

4 Honnavar Port Not possible to anchor ship 1 to 2 m depending on wave

height

5 Bhatkal Port Not possible to anchor ship Nil

6 Kundapur Port Not possible to anchor ship Nil

7 Hangarkatta Port Not possible to anchor ship Nil

8 Malpe Port 20 2

9 Padubidri Port Not possible to anchor ship Nil

10 Old Mangalore Port 30 3



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No Minor Ports Maximum Length of Cruise

Ship possible to

accommodate (m)

Maximum Draft of Ship

possible (m)

11 New Mangalore

Port

Can accommodate ships of big

size

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4.2 Details of Karnataka Ports

4.2.1 Mangalore Port

The Old Mangalore port is a minor port situated on the left bank of the Gurupur river

and is approximately 10 Km south of the New Mangalore Port (Latitude 120 52’ N

and longitude 700 51’ E). The Port is functional only during the fair weather season

from September to May.

New Mangalore Port is a modern all-

weather port situated at Panambur,

Mangalore. The New Mangalore Port

was declared as the 9th Major Port on

4th May 1974.

Connectivity:

The Port is served by Broad Gauge

Railway line and is well connected

with Southern region of the country

through Mangalore. The Konkan

Railway linking Mangalore with

Mumbai is well connected to the

Northern region of the country. The

Broad Gauge conversion between

Hassan - Mangalore is expected to be

completed within a few years, which directly connects Mangalore to Bangalore and

other major places of Karnataka. The port, known by the name of New Mangalore

Port Trust (NMPT), is well equipped to handle bulk, liquid chemical, POL, crude and

POL products, LPG containers etc.

The details of infrastructure facilities available in the port are furnished in the

following table:



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Table 7: Facilities at Mangalore Port

Old Mangalore Port

Fuel Bunkering Available near Fisheries Wharf

Berth 210 m Commercial wharf

Pilotage Local Pilots are available

Towage Local fishing vessels are available on hire basis

Mooring Arrangements Local Shipping Agents available

Navigation Facility 1). 3.5 m draft at channel

2). 3 m draft at Berth

3). 3 m draft at Sea mouth

Ship Coordination Centre Private agency available

Maintenance & Repair 30 m length dry dock available

4.2.2 New Mangalore Port

The New Mangalore Port is situated on the West Coast of India in the state of

Karnatka almost midway between the major Ports of Mormugao and Kochi. The port

is 170 nautical miles south of Mormugao Port and 191 nautical miles north of Kochi

Port. , the only Major Port of Karnataka was declared as the 9th Major Port on 4th

May 1974 since it has the deepest inner harbour on the west coast.

Figure 5: New Mangalore Fort (Source: www.newmangalore-port.com



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Connectivity:

The Port is served by a Broad Guage Railway line and is well connected with Mangalore, Kerala State and Chennai. The Konkan linking Mangalore with Mumbai is already operational. The Arsikere + Hassan line to the hinterland is being converted as a broad gauge line and is expected to be completed during 1998-99. The Port is provided with Railway sidings connected to the Trunk Railway with adequate storage space and facilities.

The National Highway 17 passes just outside the port, thus making the Port. There are daily flights to Mumbai, Bangalore and Chennai. The port provides a railway siding to Mangalore. The railway links spread into the neighbouring states of Maharashtra, Kerala and Tamilnadu besides the hinterland. The rail network extends to major industrial cities like Chennai, Bangalore Coimbatore and Mumbai in addition to numerous other commercially important cities.

Table 8: Facilities at New Mangalore Port

New Mangalore Port

Fuel Bunkering bunkering facility alongside berths

Berth Total of 14 berths,

length range 125-350 m,

Max draft 14 m

Pilotage Round the clock pilotage,

land and marine secutity.

Towage Locally available

Mooring Arrangements Locally available

Navigation Facility Available 24 hours.


Maintenance & Repair Private Agency Available

4.2.3 Malpe Port

The port of Malpe is located at the mouth of Malpe river in Udupi District. It is

located south of Hangarkatta Port and north of Mangalore Port. Malpe is a major

fishing harbor which has been provided with the breakwater for guiding the river

flow and is working as an efficient harbor.



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Connectivity:

The port is connected by Konkan Railway line and National Highway17. The details of

infrastructure facilities available at Malpe port are furnished in the following table:

Table 9: Facilities at Malpe Port

Malpe Port

Fuel Bunkering Available

Berth 35 m Length Concrete Jetty

Pilotage Local Pilotage available

Towage Local fishing launches available

Mooring Arrangements Local agents available

Navigation Facility 1). 4 m draft at channel


Maintenance & Repair Tebma Shipyard available

Figure 6: Malpe Port



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4.2.4 Karwar Port

Karwar is situated at the northern extremity of Karnataka coast 64 Kilometers south

of Marmugoa Port on the Southern side of the Kali River and caters to the

requirement of 2.00 lakh square Kms. of hinter land. It caters to vessels with a draft

of 8.25 meters only due to under water physical obstructions in front of berths. It

has capacity to accommodate simultaneous berthing of two ships.

Connectivity:

It is connected to coastal part through Konkan Railway line, and N.H 17 passes close

to it. The linkage of Hubli-Ankola Railway line is under progress which would improve

the rail connectivity.

The infrastructure facilities available at Karwar port can be summarized as follows:

Table 10: Facilities available in Karwar Port

Karwar Port


Berth 355 m Commercial wharf, 90 m Lightrage wharf

Pilotage Port Officer

Towage Tug of 30 T Bollard pull

Mooring Arrangements Available

Figure 7: Karwar port



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Karwar Port

Navigation Facility 1). Channel 8 m Draft

2). Turning Circle 6 m

3). Commercial wharf 5.5 m

4). Lightrage wharf 3.5 m

Ship Coordination Centre Available

Maintenance & Repair Nearest at Goa Port

4.2.5 Hangarkatta Port

This port is located on the bank of Sita and Swarra River with a large potential for

development as a fishing harbor. At present, the navigation of this port is through

sand bar. By construction of suitable break-water and river training walls, it is

possible to develop this port into a regular all weather port.

Connectivity:

The port is connected by Konkan Railway line and National Highway17. Presently

there are no significant facilities in Hangarkatta port.

4.2.6 Kundapur Port

This port is located on the Right Bank of the Pancha Gangoli Rivers. The estuary

formed by these groups of rivers has got a vast water spread. The main restriction is

the sand bar at the mouth of the river. By providing suitable Breakwater and

dredging, there is a good potential for the development of this port.

Figure 8: Hangarkatta Port



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Connectivity:

The port is connected by Konkan Railway line and National Highway17. There are no

significant facilities at Kundapur port.

4.2.7 Padubidri Port

This is a new port situated in the North of Mulki river open to the sea, facilities have

to be created. This port was proposed to serve Nandikur thermal power project and

is also suitable for import of coal and export of iron ore. Infrastructure facilities are

proposed to be developed through interested private participation.

4.2.8 Honawar Port

This port is located on the right bank of

the Sharavathi River and at present is

functioning as a fair weather lighterage

port. The main bottleneck in the

development of the port is the sand bar

at the entrance of the river. It is

surrounded by hills and forests.

Connectivity:

The port is connected by Konkan

Railway line and National Highway 17.

Figure 9: Kundapur Port

Figure 10: Honawar Port



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4.2.9 Tadri Port

This port is situated in the estuary of the Aghanashini River. The backwaters of the

river Aghanashini has got, vast water front at this port and there is a good scope to

develop this port with modern infrastructural facilities. This port has been projected

for development under BOOST (Build-Own-Operate-Share and Transfer) concept

through private participation.

Connectivity:

The connectivity of this port is better in comparison with some of the other minor

ports. Konkan Railway line and National Highway 17 are passing very close to the

port area. Also National Highway 63 and proposed Hubli - Ankola Railway line and

Honnavar - Tumkur National Highway 206 are added connectivity of the port. The

infrastructure facilities available at Tadri port can be summarized as follows:

Table 11: Facilities at Tadri Port

Tadri Port


Berth 8 m R.C.C. Jetty

Pilotage Not available

Towage Local fishing launches available

Mooring Arrangements Local fishing agents available

Navigation Facility 1). 5 to 6 m draft at channel

2). 2.5 to 2 m at Sea Mouth

Figure 11: Tadri Port



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Tadri Port

3). 1.5 m Alongside wharf

Ship Coordination Centre Not Available

Maintenance & Repair Not Available

4.2.10 Belekeri Port

This port is located 26 Kms. south of Karwar on the bank of Hattikeri river and is a fair weather lighterage port and is open to traffic for about 8 fair weather months. There has been much investment made for developing the cargo handling infrastructure of the port.

Connectivity:

It is connected by Konkan Railway Broad gauge line to coastal part, and National Highway 17, National Highway 63 passes very close to it, linkage of Ankola – Hubli railway line is expected to improve the rail connectivity to other parts of Karnataka. The infrastructure facilities available at Belekeri port can be summarized as follows:

Figure 12: Belekeri Port



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Table 12: Facilities in Belekeri Port

Belekeri Port

Fuel Bunkering Local bunkers available

Berth 60 m Length

Pilotage Not available

Towage Local towage available

Mooring Arrangements Local arrangements by agents

Navigation Facility 1). 3 m draft at channel

2). 2.5 m near wharf

Ship Coordination Centre Local agents available

Maintenance & Repair Nearest at Goa Port

4.3 Inference

It can be inferred from the above information that New Mangalore Port and Karwar port would be the appropriate ports for operating the cruise circuit as they have ship anchoring facilities and off-board facilities at the port could be augmented. Mangalore has an advantage of having an airport whereas Karwar is in close proximity of Goa. These ports have the potential of capturing tourists both directions. Also the coastal strip between the two short-listed locations has number of places of tourist interest. An intermediate halt can be planned at Malpe port through motor boats to capture surrounding tourist locations. The three shortlisted ports for operating the cruise circuit in Karnataka are proposed to be:

New Mangalore Port

Karwar Port

Malpe Port (only for access by Motor boats)



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5. Proposed Cruise Circuits for Coastal Karnataka

The project site’s characteristics, location, and existing/potential catchment available

in the region are the factors that have been considered to arrive at the product mix.

Further sections elaborate upon the feasibility of each type of development.

5.1 Development Options

In Cruise Tourism, it’s the destinations in the itinerary which attract tourists and liners. It is important to include attractive, varied and exotic destinations in the State that can be linked to the cruise ports and highlighted as cruise offerings. While this would be essential to position the ports as effective ‘ports of call’ it would be equally important for creating a market for the home ports where domestic and foreign tourists visiting the destinations would build the cruise into their itinerary and suitable packages may be offered.

Market competition demands that itineraries be developed that satisfy a number of key passenger requirements, including the following:

Accessibility: Market requirements are for short term (4-7 day) cruises to accommodate the relatively short vacation period. Time and ease of access to and from the port of embarkation/disembarkation is therefore an important factor.

Season: An important aspect of the cruise sector is the seasonality, which is determining factor.

New Products: Cruise lines are continuously seeking new and innovative products to satisfy a high proportion of repeat travelers. Also with growing competition from other cruise lines the unique selling point lies essentially in the products offered.

Multiple Destinations: Visiting different ports of destination is an important experience sought on 7-10 day cruises. This new concept emphasizes on the “region being the destination” rather than the port.

High Quality Port Visit: The quality of ‘port experience’ specially in terms of basic facilities like quick and easy clearances, transport facilities, baggage handling facilities and some basic amenities like telephone booths etc from the perspective of both passenger and the ship, is an important determinant.

Market Size/ Proximity: The local/regional market must be of sufficient size to support the presence of high cost cruise ships.

Shore Excursions: The shore excursions comprise one of the major sources of total cruise-line revenue. This implies that the itinerary should offer destinations with range of attractions to induce a high passenger take up.



27

The coastline of Karnataka offers scenic palm-fringed beaches which have an

immense potential for holiday destinations. It is proposed to integrate cruise circuit

with coastal circuit to create an overall experience for the tourists. For this purpose,

the cruise circuit is proposed to be combined with three important coastal circuits.

This shall offer an integrated experience of the coastal Karnataka as well as high seas

to the tourists. For this purpose, three coastal circuits have been identified and

elaborated upon subsequently in this chapter. These three circuits are Mangalore

Circuit, Udupi Circuit and Karwar Circuit.

5.2 Proposed Tourist Circuit

The proposed circuits are covered under the following two options:

5.2.1 Option 1: Coastal Karnataka Circuit: -

This is proposed to be a three days four nights circuit where the land destinations have been combined with the coastal circuit of Karnataka. This circuit has been designed to give the inclusive experience of cruise as well as coastal Karnataka to the tourist.

The cruise shall commence from Mangalore Port on day-I evening with on board activities. On day-II morning, the cruise shall berth at Karwar and the tourists shall be taken around to visit the locations in Karwar circuit. The tourists shall be brought back to the cruise by early evening for on-board activities. On day 3, the passengers would be taken through motor boats to Malpe port to visit locations short-listed in Udupi circuit. On the same evening the cruise shall be moved towards high-seas where if permits are available, casino facilities shall be opened to the tourists. On day-IV the cruise shall start the backward journey to Mangalore and reach the port by evening. The Mangalore circuit can be incorporated either at the beginning of day–I or could be opted for Scenario II where the cruise commences from Karwar. In such scenario, Karwar circuit could be replaced by Mangalore circuit. The following table summarizes the components of the cruise combined with coastal circuit. The details of the locations visited in each circuit are furnished in Annexure 1.

The following map gives a pictographic representation of the circuit selected as option 1 (Coastal Karnataka Circuit).



28

NIGHT 1

DAY 2: COVERS KARWAR CIRCUIT

THROUGH KARWAR PORT

NIGHT 2

NIGHT 3

TO HIGH

SEAS

Figure 13: Cruise circuit in coastal Karnataka (Option 1)



29

5.2.2 Option 2: High Seas: -

In this option the cruise shall be permanently parked in the high seas and the tourists would be transported through motor boats from the port to the cruise. The cruise is proposed to be a floating resort where the tourists can enjoy the facilities on board. This option is proposed to be an overnight stay package. The facilities on board shall be decided under the government policies and other prevailing laws. The distance of the cruise from the port shall be based on the prevailing navigation laws and sea conditions. The services to the parked cruise shall be provided through motor boats.

The major difference in the above two options is that in option 1, the cruise is moving to different locations whereas in option 2 the cruise is stationary and the visitors are transported to the cruise through motor boats. The specifications of the cruise ships that can be considered for this purpose are provided in Annexure2.

The following map gives a pictographic representation of the circuit selected as option 2 (High seas Circuit).



30

The details of the circuits which could be taken up as Phase II are furnished in

Annexure 3.

Cruise ship parked permanently

in high seas as a floating resort.

Tourists transported to the cruise ship

through motor boats.

Figure 14: Proposed cruise circuit in Coastal Karnataka (Option 2)



31

6. Traffic Estimations

6.1 Karnataka Potential

The viability of the project is directly linked to the level of tourist traffic. The traffic

estimations would lead to the decision on the capacity of the ship required, the cost

centers and the revenue centers to have a financially viable project. The following

aspects have been studied to arrive at the financial analysis of operating cruise

tourism in Karnataka

Traffic projections

Cost Centres

Revenue Assumptions

Viability Analysis

6.1.1 Traffic estimations from macro trends

The following table presents the number of international tourists visiting Karnataka:

Table 13: Inputs for traffic estimations

Particulars International Arrivals

International Tourists visits in Karnataka in 2007 5,34,563

% increase in Foreign Tourist Arrivals in India in year 2008 5.6%

Karnataka Domestic Tourists in year 2007 3,78,25,953

% increase in Domestic Tourists in India in year 2008 6.9%

Source: www.indiastat.com

As the data on number of tourist visiting Karnataka is available till 2007, the same is

increased in proportion to the increase in the number of visitors visiting India to

arrive at estimated numbers in the year 2009. The potential cruise tourists can be

estimated be arriving at a percentage of the total tourists visiting Karnataka either

from other foreign countries or from other parts of the country.

WTO Report: Tourism Vision 2020 indicates that averages of 1.4% of all international

arrivals across the world are cruise tourists. Considering the same proportion once

cruise facilities are developed in Karnataka, the potential market for cruise tourism

in Karnataka has been arrived.

Table 14: Karnataka cruise potential from International arrivals


International Tourists visits in Karnataka in 2007 5,34,563

http://www.indiastat.com/



32


% increase in Foreign Tourist Arrivals in India 5.6%

Estimated number of International arrivals in Karnataka in 2009 5,97,240

Average Cruise Tourists as % of all international arrivals 1.4%

Expected International Tourists 8361

The following table elaborates the cruise potential through the details of domestic

tourist footfalls:

Table 15: Karnataka cruise tourism potential from domestic tourist footfalls

Particulars Domestic Tourists

Karnataka Domestic Tourists in year 2007 3,78,25,953

% increase in Domestic Tourists in India 6.9%

Estimated number of Domestic Tourists in Karnataka in 2009 4,32,26,024

Urban Tourists 27.0%

Higher Income Group 5.0%

Travel for Leisure and Holiday 8.7%

Cruise Tourists as % of Leisure and Holiday Travelers 1.4%

Expected Domestic Tourists 711

From the above tables, the total tourists that are likely to travel through cruise in

Karnataka are around 9,000. Considering the seasons for cruises in Karnataka,

maximum of 28 trips could be expected in a year.

6.1.2 Comparison with other luxury tourism modes:

Various new modes to promote tourism have been adopted in the past few years

and each concept has exhibited a certain level of acceptance among the travelers for

various reasons. These concepts are luxury train concepts like Palace on Wheels in

Rajasthan and Golden Chariot in Karnataka, Vaishnodevi Heli Tourism and Cruise

tourism in Kerala. These concepts are compared with each other on fixed

parameters to understand the acceptance of these concepts among the tourists and

to arrive at the comparative traffic numbers which could be considered for cruise

tourism in Karnataka.



33

Table 16: Comparison of some of the new tourism concept

Golden Chariot Palace on Wheels Vaishnodevi Heli Tourism Cruise Kerala

No of days of operation

in a year

189 days (27 trips) 300 days (43 trips) Operates 365 days but the

number of flights a day varies

across year.

Operates 365 days

but the number of

trips a month varies

across year.

Tariff Rs. 15,520 per person per night

Rs.1,08,640 per person for

package of 7 nights

Rs. 30,150 per person per night

Rs. 2,11,050 per person for

package of 7 days

Rs. 3,200/- per person for Katra-

Sanjichhat-Katra flight

Rs. 8, 666 per person for

complete Package with one

night stay

Rs.5,500 per person

per day

Rs. 20,000 for a

three-night tour

package

Circuit Bangalore - Srirangapatnam -

Mysore - Kabini -

Shravanabelagola - Belur -

Halebid - Hampi - Badami - Aihole

- Pattadakal - Goa - Bangalore.

New Delhi - Jaipur - Jaisalmer -

Jodhpur - Sawai Madhopur -

Chittaurgarh - Udaipur -

Bharatpur - Agra - Delhi

Katra to Vaishnodevi Kochi-Maldives-Kochi

Kochi-Colombo-Kochi

one-night high sea

sailing

Circuit Time 7 Nights / 8 Days 7 Nights / 8 Days Covered in a day 3 days

Capacity per day 87 112 50 (5-6 passengers is the

capacity and 10 flights per day

1,200

Actual Passengers

(annual)

825 4350 580 (approximately) Not Available

(potential was

estimated to be

60,000)



34


Seasons All year except 2 months of

maintenance

It runs throughout a year The flights operate everyday operational in 6 to 8

months

Marketing Method "Luxury Trains, New Delhi" is

appointed as worldwide

marketing partner for all

marketing activities related to

the train. Offices strategically

located all around the world.

From the website, all information

is available.

All the marketing, sales, and

facilities are managed by

Rajasthan Tourism. Marketing is

done by authorized Marketing

Agents. It has its own website

and is marketed with "Incredible

India" campaign.

The details of the facilities are

given on the website of

Vaishnodevi Temple and also on

all the major tourist and holiday

related websites

Kerala Tourism has

tied up with Louise

Cruise to market and

promote cruise

tourism from Kochi.

Ticketing The Tourism Department handles

complete control over online

ticket booking. The General Sales

Agents (GSA) or Preferred Sales

Agents (PSA) would have to

report to DoT to book seats or

sell tickets.

Rajasthan Tourism Development

Corporation (RTDC) does

ticketing through its travel agents

Ticketing is done by the private

operators

Louise Cruises



35


Services Offered travel/all meals/Conducted Sight-

seeing Tours/Entrance fees at

Monuments/Parks/Palaces and

Cultural Programs

07 Nights accommodation on

board Royal Rajasthan Palace on

Wheels

All meals (morning tea,

breakfast, lunch, evening tea,

and dinner)

Tea/coffee/bottled water

Guided sightseeing tours in

deluxe coaches

Entrance fees and still camera

fees for monuments and palaces

as specified in the itinerary

Cultural entertainment

Government taxes

Tour Packages also available

apart from the trip of Katra-

Sanjichhat-Katra.

1 Dining room,

Buffet,

Entertainment

Lounge, Bars and

Disco, Pub, Children

Club, Casino, Beauty

Salon, Fitness Center,

Basketball & Volley

Court, Sauna /

Massage, Swimming

pool, Internet

Corner, Fully air-

conditioned,

Telephone Fax,

Satellite, Telephone,

Doctor on board,

Duty Free & Travel

Value Shop



36

The numbers of tourists traveling annually in the above mentioned concepts varies

from 580 to 60000 and also depending on the mode of travel. The Kerala cruise is

expected the annual traffic as about 60,000.

Based on the above comparison, the following analysis has been done to arrive at the

number of total passengers for which the facility has been designed to the actual

number of passengers who traveled since the initiation of the project.

Table 17: Analysis of the comparison of similar luxury tourism projects

Table 18: Estimating the capacity

It has been observed that the ratio of actual passengers to total capacity lies between

3% - 21%. Also the 21% figure is based on projected numbers for the year and not the

actual number. Hence to be more precise, the ratio could be considered between 3% -

11%. The numbers for cruise in Karnataka is 10.7% which falls between the ranges.

Hence the number of visitors assumed for the viability of the project seems to be of

Parameters Golden

Chariot

Palace on

Wheels

Vaishnodevi

Heli Tourism

Cruise Kerala

Capacity per day 87 112 50 1,200

Operating period

(Days)

300 360 360 240

Total Capacity

(annual)

26100 40320 18000 288000

Actual Passengers

(annual)

825 4350 580 60,000*

Ratio of Actual

Passengers to Total

Capacity

3.2% 10.8% 3.2% 20.8%

Parameters Cruise Karnataka

Capacity per day 350

Operating period (Days) 240

Total Capacity 84000

Estimated Passengers (annual) 9000

Ratio of Estimated Passengers to Total capacity 10.7%



37

acceptable order. With this comparison the annual number of 9,000 tourists for cruise

tourism in Karnataka seems to be reasonable.

Based on the above the numbers, the following two options can be considered for

operating cruises in Karnataka. Option – I is to have one day one night short cruise to

the high seas. The other option is to have a 3-4 days trip as discussed earlier.

Table 19: Options for operating cruise circuits

Parameter Cruise Tourism- Option 1

(One day & one Night Trip)

Cruise Tourism- Option 2

(3-4days Trip)

No. of days of operation

in a year

260 73

Tariff (in Rs.) 4500/3000 4500/3000

Circuits Proposed :

Within Karnataka

Coastal region

Mangalore-Karwar-Malpe-

Udupi- Mangalore

Cruise Within India Mangalore-Cochin-Male-

Lakshadweep- Mangalore

Mangalore- Goa-

Lakshdweep- Mangalore

Mangalore-Cochin-Male-

Mangalore

International Cruises Mangalore-Goa-Mumbai-Dubai

Mangalore-Cochin-Colombo

Capacity Per Day 350 350

Seasons Throughout the year except in

monsoon season.

Throughout the year except in

monsoon season.

Marketing Methods To be promoted by the Tourism Dept of Karnataka and private investor.

Could employ an authorized marketing agency, websites and ad

To be promoted by the

Tourism Dept of Karnataka

and private investor.

Could employ an authorized

marketing agency, websites



38

Parameter Cruise Tourism- Option 1

(One day & one Night Trip)

Cruise Tourism- Option 2

(3-4days Trip)

campaigns. and ad campaigns.

Ticketing The private investor could

standardize the procedure and

Govt get their share as

income/concession paid.

The private investor could

standardize the procedure and

Govt get their share as

income/concession paid.

Services Offered Medical facilities,

communication facilities,

Restaurant, Casinos, Swimming

Pool, Children play area, Dance

floor, Games, Stand up shows,

port visits(optional) and local

tours, shopping facilities

Medical facilities,

communication facilities,

Restaurant, Casinos, Swimming

Pool, Children play area, Dance

floor, Games, Stand up shows,

port visits(optional) and local

tours, shopping facilities

The subsequent chapter indicates the costing for operating the options discussed n the

possible cruise circuits.



39

Financial Model for Operating

Cruise Ship

Capital Costs O&M Heads Revenue Heads

Port Charges

Passenger Handling Charges

Crew Charges

Fuel Charges

Maintenance and Insurance

Entertainment Charges

Off-board Charges

Casino license fees

Cost of Cruise Ship

Boat Charges

Pre-operative expenses like expenses towards marketing, office set-up, approvals, Ship procurement

Tickets Price

Restaurant Revenues

Bar Revenues

Casino Revenues

Shop Revenues

8. Project Cost

8.1 Financial Model

This chapter covers the financial estimations for the private player to run the cruise ship on the Karnataka circuit. Based on the estimations for the costs, number of trips and revenues viability of the project is analyzed.

The Financial Model for the operation of the cruise ship can be represented as per following.

The cost estimates do not include the cost involved for the development of dedicated cruise terminals.

8.1.1 Project cost estimations

The project is analyzed for two options.

Option 1: Private Player operates a cruise of 3 to 4 days

Option 2: Private Player operates a cruise of one day and one night

Figure 15: Financial model for operation a cruise ship



40

The cruise ship requirement for both cases would be different to a certain extent. Estimations have been made on the specifications of the cruise ships, their cost and a detailed analysis is carried out to know the viability of each of the options.

The Private Player may choose to purchase a new ship or a second hand ship. Both this options would have a considerable impact on viability. The cost of the ships and other assumptions are given in the table below.

Table 20: Details of a cruise ship under consideration for a project

Particulars Option 1 Option 2 Units

Cost of a new ship 125.0 85.5 Rs. Crore

Cost of a second hand ship 74.0 57.0 Rs. Crore

Total Seating Capacity 350 100 passengers

Crew Members 140 40 Numbers

Gross Tons of the Ship 10000 8500 Tons

No of Passenger boats required for circuit 2 2 Numbers

The cost of a cruise ship for Option 1 is arrived from the comparison with the similar ships manufactured in India. The Initial Cost and other details pertaining to it are as listed in the table below.

Particulars Option 1 Option 1 Option 2 Option 2

New Ship Second

Hand Ship

New Ship Second Hand

Ship

Cost of new Cruise Ship 125.0 74.1 85.5 57

Cost of Passenger Boats 8.5 8.55 8.55 8.55

Pre-Operative Expenses 6.75 6.73 4.67 4.67

Contingency Charges 2.2 1.4 1.5 1.03

Interest During Construction 7.7 4.9 5.36 3.9

Total Project Cost 150.15 95.65 105.56 75.13

The estimations for all four scenarios presented above are made to check the financial viability of the project.



41

8.1.2 Revenue Estimates

The inputs for estimating the revenues from cruise operation are listed below.

Table 21: Revenue Estimation

No Assumptions for estimating Ticket Revenues Value

1 Types of berths on the cruise ship (Premium & Standard) 2

2 Percentage of total accommodation capacity is of premium type 40%

3 Percentage of total accommodation capacity is of standard type 60%

4 Price of premium type berths for 3-4 days trip (Rs. per person) 24,000

5 Price of standard type berths for 3 days trip (Rs. per person) 15,000

6 Price of premium type berths for single day trip (Rs. per person) 8000

7 Price of standard type berths for single day trip (Rs. per person) 5000

It is to be noted that the operation of cruises would be seasonal. A cruise operating on a circuit of a single day and night (option II) is assumed to make around 120 trips a year gradually increasing to 176 trips a year over the period of 6 years. The number of trips considered for calculation for each circuit is as listed below. Similarly for a circuit of 3-4 days (Option 1), a Cruise ship would make 30 trips a year gradually increasing to 40 trips a year.

Table 22: Number of trips of cruise ship in the initial years

Particulars Year 1 Year 2 Year 5 Year 8 Year 10

Total numbers of trips for 3-4

days circuit in a year (Option 1) 120 130 163 176 176

Total numbers of trips for 1 day

circuit in a year (Option 2) 35 40 61 93 107

Occupancy (% of capacity) 75% 75% 80% 80% 80%

In the idle time the ships are generally given on rent for organizing party, for private tours etc. For calculation purpose, it is assumed that the ship would be lying idle on the port.

The total numbers of passengers expected from the above mentioned number of trips are as listed below.



42

Table 23: Expected number of passengers from the trips of cruise ship in the initial years

Year 1 Year 2 Year 3 Year 4 Year 5

No of Passengers for 3-4 days

circuit (Option 1) 7875 8663 10080 11200 11200

No of Passengers for single

day circuit (Option 2) 9000 9750 11200 12080 13040

Revenues from the project:

The Revenues from the project from both the options are estimated and presented in the table below.

Table 24: Estimated revenue for the cruise ship

Revenue Heads Year 1 Year 2 Year 5 Year 8 Year 10

Option 1 Rs. (Cr) Rs. (Cr) Rs. (Cr) Rs. (Cr) Rs. (Cr)

Tickets revenues 14.6 16.6 23.4 25.6 27.2

Restaurant revenues 1.6 3.6 3.3 3.6 6.9

Bar revenues 0.9 2.2 1.8 2.2 4.2

Casino revenues 1.5 1.6 0.1 1.6 2.4

Shop revenues 0.1 0.1 5.4 0.1 0.1

Total Revenues (Option 1) 18.7 24.1 34.1 37.9 40.8

Option 2

Tickets of 1 day trip 5.6 6.2 9.1 10.1 10.4

Restaurant licenses 1.8 4.1 6.3 7.9 8.7

Bar Licenses 1.1 2.5 3.8 4.8 5.2

Casino Licenses 1.7 1.8 2.1 2.4 2.7

Shop Licenses 0.1 0.1 0.1 0.1 0.1

Total Revenues (Option 2) 10.3 14.7 21.4 25.9 28.2



43

The revenues from operating casino are estimated after comparison with the similar off-board casino, being operated on a cruise ship in Goa, and adjusting the revenues by the number of tourists on board.

8.1.3 Operation and Maintenance Expenses:

The inputs for calculating O&M of the cruise operations are listed in the table below.

Table 25: NMPT charges for the cruise

No Particulars Value Source

1 NMPT Port Charges

Port Dues 2.32 Rs. Per GRT NMPT Website

Pilotage 8.55 Rs. Per GRT NMPT Website

Berth Hire charges 0.045 Rs. Per GRT per

hour NMPT Website

2 Type of Fuels used

for the ship

Diesel Oil/ 180 cst

Heavy Oil

From the quotation of second hand

cruise ship under consideration

3 Fuel Consumption 18 kg/km From an article of Economic and

Political Weekly and after

discussion with cruise ship

operators

4 Annual Maintenance

and insurance costs*

5 % of the ship cost After discussion with stakeholders

5 Idle time ship fuel

costs

25% to 35 % of the

running fuel costs After discussion with stakeholders

6 Casino license fees Rs. 50 lakhs per year Kerala State Government collects Rs

5 crore as license fees. The concept

being new in Karnataka, the same is

assumed much lower for the state.

*Note: These expenses are the average of the yearly maintenance costs.



44

The estimated O&M expenses are as presented below:

Table 26: O & M expenses for initial years

Sl

No.

Cost Head Year 1 Year 2 Year 5 Year 8 Year 10

1. Port Charges 1.0 1.2 1.5 1.7 1.8

2. Fuel Charges 1.3 1.5 2.1 2.4 2.6

3. Entertainment Charges 0.2 0.2 0.2 0.2 0.3

4. Crew Charges 1.3 1.4 1.6 1.9 2.1

5. Maintenance and Insurance 5.5 5.7 6.2 6.8 7.2

6. Staff for running ship 0.3 0.3 0.3 0.4 0.4

7. O & M in idle time 3.4 3.4 3.5 4.1 4.5

8. License fees for Casino 0.5 0.5 0.6 0.6 0.7

9. O & M for facilities 1.2 2.2 3.2 3.7 4.1

10. Off board expenses 0.3 0.3 0.4 0.5 0.5

Total O & M Expenses 15.0 16.6 19.6 22.2 24.0

It can be observed from the Revenues and O&M estimations that for the initial years of operation, the revenues may not be able to cover the costs and the private operate may have to bring the contingent equity to cover the loss.

8.1.4 Viability Analysis:

The life of a cruise ship is around 25 years if any major refurbishment is not done. With proper maintenance and periodic refurbishment, the ship can be operational for a considerably higher period. The second hand ship under consideration is around 35 years old and has gone through four refurbishments. The life of 10 years could be expected from this ship. The tenure for the financial model for a new cruise ship is considered as 25 years and the same for a second hand ship is considered as 10 years. The key financial indicators are summarized as follows:



45

Table 27: Key financial indicators

Sl

No.

Particulars Option 1 &

new ship

Option 1 &

second

hand ship

Option 2 &

new ship

Option 2 &

second hand

ship

1. Estimated Project Cost 150 95.65 105.6 75.13

2. Debt to Equity Ratio 60:40 60:40 60:40 60:40

3. Interest rate on Debt 15% 15% 15% 15%

4. Project IRR for 10

years NA 8% NA

Negative

Return

5. Project NPV for 10

years NA (16.1) NA (30.2)

6. Project IRR for 25

years 11% NA 6% NA

7. Project NPV for 25

years (23.4) NA (36.9) NA

The project is not viable financially for a Private Player. At the same time, It is to be noted that this viability is extremely sensitive to critical aspects such as project cost and revenue accruals arising from tourist arrivals and tourist spend. A fluctuation in any of these factors would seriously impact on the project financial performance and viability.



46

9. Implementation Framework

9.1 Project Structure

The itinerary for each circuit shall depend on the option selected. In case of option I (coastal Karnataka circuit) the itinerary shall consist of the travel in cruise ship, off board guided tours to tourism destinations and provision for local cuisine. All these activities would be the responsibility of the Private Operator.

The Private Operator would be allowed to charge tariff from users of cruise. The ticket system would be developed, operated and managed by the Operator. The Operator would pay charges to Department of Tourism for operating the cruise.

The project structure would largely depend on the total number of trips required for the Private Operator to break even in a particular season which would in turn depend up on the length of the circuit (option I or option II) and the type of off-board activities (in option I) or on-board activities (in option II) that the operator would have to take up to make the circuit appealing for increased occupancy.

9.1.1 Implementation Options

The options for implementation are based on the type of risk incurred by either of the two parties; Department of Tourism and the Private Operator. The implementation options would vary on the basis of the following factors:

Deployment, operation and maintenance of Cruises.

Marketing and Promotion of the concept.

Commercial risk

Sale of Tickets

Revenue sharing

Off board activities

Tie up with tour operators for other modes of transport

Coastal circuits – water sports, guided tours to destinations, local cuisine, guided tours of heritage sites, cultural programs, local cuisine, etc.

The following figure indicates the sharing of responsibilities between the Private Operator and the DoT based on which the project structure will follow.



47

The merits of the above mentioned structure is that the procurement costs, crew, operation, maintenance and insurance costs of the cruise ships would be borne by the Private Operator. The marketing and promotion would be the responsibility of the Private Operator also which could lead to increase in revenues. In the event of the project breaking even, the Department would also be given a percentage share in the revenues.

The demerits would be that there would be no revenue share in the formative years, so in the event of the Project earning huge revenues, the payment to Department of Tourism would be constant percentage in later years(no matter any hike in the revenue). Department of Tourism would have to pay towards the assured number of trips.

The demand for cruise tourism in the State is nascent and the market for the same is unpredictable. The objective for introducing cruise tourism in Karnataka is to cater to that segment of tourists who wish to seek a unique experience by traveling in a cruise.

The Department of Tourism, therefore, could consider incentivizing the Private Operators to invest in the Project. One of the incentives could be assuring the number of trips to the Private Operator per circuit per season.

Private

Operator

(PO)

Cruise – Deployment and O&M

Terminals – Development and O&M

Other basic infrastructure

Off board services

Commercial Risk

Marketing and Promotion

Government

of

Karnataka

Private

Operator

(PO)

Government

of

Karnataka

Private

Operator

(PO)

GoK and

Private

Operator

Private

Operator

(PO)

Figure 16: Sharing of responsibilities between GoK and Private Operator



48

9.1.2 Options for project structuring

There are various options under which the development of cruise tourism can be undertaken under a PPP framework Each model varies depending upon the extent of sharing of risk and returns along with ownership rights as defined in the ‘concession agreement’ entered into between the Government and the operator.

Generally in most of these structures, financing and construction is the sole responsibility of the private partner. Equally all these structures pre-supposes the charging of ‘user fee’ by the private partner as return for his investment.

Joint Venture

In a ‘JV’ structure, the project could be implemented by a Joint Venture Company, (JVC), in which both the private player and the Government would have shareholding. The Government would invest in the project and, as shareholder, would be part owner and consequently bear all the related commercial and marketing risk arising out of the project. The financial returns to the Government would accrue in the form of ‘dividends’ and exit option would be available only through the divesting of Government shareholding in the JVC.

Concession contract

Other option is offering the project to private player for undertaking development & operations of the cruise tourism on Concession framework. In this structure, the Bidder paying the highest concession payment is the preferred Bidder, after going through a transparent bid process.

The private operator is responsible for financing new investment over the life of the contract. The assets are nominally owned by the public entity; however, the private operator takes over responsibility of managing assets, creating new assets where required, raising finance for the new investments, providing the service, operations and maintenance, levy fees and collection of charges. The private operator would pay an annual fee or may receive an annual subsidy depending on the financial circumstances.

Generally port projects undertaken through private sector participation involve a 30-year concession period, during which the private operator is able to recover his investments, with adequate returns. Investments made in developing infrastructure for the cruise industry require a longer time period for adequate returns to be generated. Hence, the period of 30 years is expected to be short for generating requisite returns on the investment to be made by the operators. To make the project viable and feasible independently, the concession / lease period may be suitably increased.

While creating a robust PSP framework, Government has to ensure that the privatization structure is bankable (i.e. acceptable to financiers and bankers) wherein the concerns and risks of all the parties – The Government, the private sector & the



49

lenders – are suitably addressed. The private partner should be able to deliver the expected requirements of the concession agreement.

Revenue sharing

Government would need to specify sharing of revenue based on a certain minimum number of passenger/ ship movements. In this scenario the bidder will define a base amount payable to the DoT for a specified number of tourist movements through the terminal. If there is an increase in the number of tourist movements, the DoT receives a higher share of the revenue and if there is a lower movement the port receives a specified ‘floor’ payment or alternatively shares in the loss.

Viability Gap Funding

It is envisaged that traditional revenue sources may not support the entire project investment; hence it is pertinent that the project has to be appropriately phased and packaged to attract investors and lenders. The viability gap funding support could be provided to the project to enhance viability of the project / package, which may not be financially viable in the absence of such support. The ‘viability gap funding’ would essentially refer to the financial support through ‘capital subsidy’ that would be required to ensure the desired level of returns to the investor within a stipulated period. Bidder who requests the lowest (or highest negative) Project Support from the DoT would be the preferred Bidder.

Service Contract

An operation and management of Cruise line could be contracted out by the DoT to a private operator. The services contracted out could include purchasing of cruise ships, operations and management and administrative tasks. Payment could be on fee per task basis. Service contracts are subject to frequent competition and usually last for one year. It is also possible to give out separate contracts for different operators thereby enabling comparative competition.

Management Contract

Under this arrangement, the private sector assumes the responsibility for core activities such as operations and maintenance of production units in a specific geographical sector or at a defined level of responsibility. Public entities legally remain the owners of the assets and bills are collected on the behalf of public entities. A private company may agree to take over the responsibility for managing a service to specified standards but using the staff, equipment, vehicles and buildings of the public entity. In such a situation the private company would bring in its management expertise.



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9.1.3 Identifying possible private sector partners

The role and the responsibilities of the Private Agencies would arise from their close understanding of the cruise tourism sector and their ability to successfully fund and manage the cruise terminal while taking the necessary investment risk. The possible private players who could be interested in the development of cruise tourism in Karnataka are:

Cruise Lines/Cruise Operators: The most potential private sector player who would be interested in developing and operating cruise terminals would be the cruise lines themselves. Some of these players are Star Cruises, Royal Carribbean International (RCI), Princess Group and Louis Group.

Port Operators: Operators of private sector ports in India could also be keen to explore the synergy of having a cruise terminal.

Hoteliers/hospitality players: Big groups engaged in hotels/ hospitality business, like the Taj Group, the Oberoi Group, Leela Palaces and Resorts etc. would explore the synergies of building cruise terminals in Karnataka in which there presence is the strongest.

Large entrepreneurs in Tourism/other businesses: Large entrepreneurs also interested in the tourism business would also like to consider investment in a cruise terminal especially close to their tourism projects.

Private Airlines: There are a large number of private airlines in India operating in many regions. Each of these may be interested in exploring the potential of cruise tourism and using their position in the cruise ports as terminal operators to create backward integration & captive passenger base for their suitably positioned airlines operations.

Other private stakeholders: Smaller stakeholders like tour operators, travels agents, shipping services agent etc would also be interested in participating in cruise terminal development, however, they may not have the finance to take it up independently. Accordingly, their participation must be explored in a consortium model where they tie up with the larger player in the investment while gaining special privileges in the development.



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10. Inference

10.1 SWOT Analysis

After the analysis in the previous chapters, the strengths, weaknesses, opportunities

and threats in developing cruise tourism in Karnataka can be arrived at for the better

understanding of the issues in the project.

Table 28: SWOT analysis for cruise tourism in Karnataka

Strengths Weakness

As per a study conducted by Ministry of Tourism in 2003, Karnataka accounts for 3.6% (11175292) of Domestic tourist visits and 3.7% (249908) of foreign tourist visits as a proportion of national measure.

A 320 kms long coastline with 10 minor ports and 1 major port.

The ports have locations that are already hot tourist destinations. The coastal region can attract tourists looking for scenic spots and also adventurous nature sport locations (Malpe Beach, St. Mary’s island & Yana).

It also has destinations that are famous for the heritage and cultural history (Udupi Sri Krishna Temple, Gokarna, Murudeshwara etc).

Karnataka also has well developed infrastructure like good transportation facility, airport network, hospitality and hotel industry etc.

There has been an increase in the number of people from all over the country coming to Karnataka to work and study. This increases the

It is a new segment to be developed; hence it will involve considerable set up costs.

There is competition from the other tourism activities in Karnataka.

There could be a possible non co-operation from locals due to cultural threats posed and fear of identity loss.

The Cruise and Port coordination in the sector is extremely critical.

There is a limited access to international tourists due to under developed air networks and transport facility.

Poor promotional activities could lead to loss in business opportunities.

Non availability of basic amenities and necessary infrastructure at the ports.



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potential for domestic tourism.

Stable weather during the post monsoon season of October to March that is ideal for traveling.

Opportunities Threats

Since it a govt. initiative, necessary regulatory and policies on cruise tourism like duty structure, custom check, immigration procedure, taxes, development of airports etc can be suitably amended or formulated.

The demographics of the local market is undergoing a change and people are more open to the idea of weekly and monthly vacations as compared to the traditional once-a-year vacation.

The recent trends of corporate holidays sponsored by the companies offer tremendous opportunity that can be exploited by cruise tourism.

Through appropriate promotional activities, tourists who frequent Mumbai, Goa and Kerala can be lured to experience something new.

The Tourism Policy 2007-08 to 2011-12 drafted by the Govt. of Karnataka aims at aggressive development of tourism in the state and make it Karnataka’s principal and largest economic activity. These measures in turn improve the success potential of cruise tourism.

The rich culture and customs of Karnataka can be incorporated into the onboard themes and activities

Inadequate waste disposal measures resulting in protests from environmental activists.

Low return on environment from the Cruise Business.

Competition from Mumbai, Goa and Kerala cruise networks could pose a threat.

Competition from macro players in other tourism segments, national as well as international.



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to give a unique experience.

Circuits that include international destinations like Dubai and Colombo will attract more domestic tourists who frequent international cruise networks.

It will result in the economic development of port region and increase the area’s overall income through commercialization.

Cruise tourism will increase the employment rates in the state. As per the Tourism Policy of Govt of Karnataka, This sector has a potential to generate 28.88 to 41.25 lakh jobs in Karnataka.

10.2 Issues and concerns

The concept of cruise tourism in India has not been very successful. The following table highlights the various cruise liner operators who ventured into the business and exited in a very short time. The reasons for the same could be poor infrastructure at the ports and poor traffic. Please refer to Annexure 5.

Table 29: Previous International Cruise line operators in India

Cruise Liners Location Operating Period

Louise Cruise

(Aquamarine)

Kerala (Kochi) to Srilanka

and Maldives

Two months

Star Cruises

(Superstar Libra)

Mumbai Two seasons 2006-07

Cruise Line Limited

(Ocean Odessey)

Goa One season

The other important issue is the provision of physical infrastructure on the ports. This may include the following:

Development of Cruise Terminals:



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Joint meeting with NMPT and other Port Authorities need to be held to sort out issues of construction and subsequent operation and maintenance of cruise terminals.

User charges to be prescribed by Cruise Operator for calling at Port.

Construction of other facilities required for cruise tourism at the terminals

Tourist Information Centre

Aerobridge

Crew Lounge

Tourism infrastructure at destinations

Road connectivity from Port.

Terminal Map/ Signboard.

Enhanced facilities at the destination itself.

Operations

Operator given the flexibility of itinerary

Would DoT commit minimum Cruise tourists.

Defining lean periods – monsoons (June to September)

Best Season – October to May (Summers)

Allocation (seats per year) for DoT

Ticketing to be done by Operator.

Should the operator necessarily tie up with JLR/KSTDC wherever available.

Performance targets

Minimum occupancy

Coverage of circuits

Ensure all destinations are promoted and reached atleast once in season.



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10.3 Guidelines

The guidelines for the development of cruise tourism are:

Encourage home porting as a means of increasing the benefits from cruise tourism while reducing congestion both in the port and on island.

Determine, monitor and evaluate the impact of cruise tourism on the natural, social and cultural environment in order to ensure the conservation of our resource base.

Continuously assess the carrying capacity of the existing attractions and services used by the cruise visitor, and develop mechanisms for the management of these sites on a sustainable basis.

Encourage the enhancement of existing attractions and facilities and the development of new ones.

Establish and manage strong relationships with the cruise industry to ensure mutually beneficial outcomes.

Develop appropriate programmes which effectively convert cruise passengers to long stay visitors.

Create a more congenial and beneficial environment for the complimentary.

Streamline immigration and customs check.

Build collaborative networks between destinations.

Dedicated terminals would need to address security concerns and facilitation as Cruises demand heightened levels of security.



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11. Annexure 1: Cruise circuits for option 1 – phase I

The details of short-listed coastal circuits are summarized as follows:

Mangalore Circuit

Mangalore is a business and commercial centre and Karnataka’s major port for the export of iron ore, coffee, spices and cashew. The important places of heritage and cultural value include the following:

Kadri Manjunath Temple

Kadri is an ancient historic spot in Mangalore dating back to about 1068 A.D. The temple of Manjunatheshwara on the hills of Kadri is a very beautiful and popular temple in Mangalore. The temple has nine tanks at the foot of the hills. It draws hundreds of visitors annually. The Lokeshwara bronze statue of the Kadri Manjunatha Temple is one among the well - known statues in India. Several festivals are celebrated with devotion and joy at Kadri throughout the year. Special Pujas are performed during Kadiruthsava on the bhadrapada shuddha thadige, Ganesha chathurthi, Navarathri and in the Karthika Maasa.

Mangaladevi Temple

Mangalore owes its origin to the temple of Mangaladevi. Situated in Bolar about 3 kms from Hampankatta (the heart of the city), the temple was built in 9th century. Various pujas and rituals are performed here during festivals. In addition special pujas are also performed on

Mangalore



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the 7th, 8th and 9th day of the Navarathri Festival.

St.Aloysius Church

St. Aloysius College Chapel is situated in the heart of the city on the Lighthouse Hill about a 1km away from the Nehru Maidan Bus stand.

The Church was built in the year 1899-1900. The special beauty of the chapel is the wonderful series of paintings executed by Bro. Moscheni that cover every inch of the interior walls and of the chapel. The central row of paintings on the ceiling depicts the life of Aloysius Gonzaga to whom the College and Chapel is dedicated. The Chapel is comparable with the Sistine chapel in Rome.

Pilikula Nisarga Dhama

The Pilikula Nisarga Dhama is located at about 12kms from Mangalore in Moodushedde Village and is spread over an area of 370 acres. The park houses boating facilities, a wildlife safari, a mini aquarium, and a science centre and is an ideal place for nature enthusiasts. It is being developed to educate the local people and tourists visiting the place on the uniqueness of the flora and fauna of the Western Ghats. The culture and heritage of Dakshina Kannada is also exhibited here for tourists.

Kaup Beach

Kaup Beach is situated 12km south of Udupi, on the West Coast National Highway. Apart from this the beach there is a ruined fort and an old 100ft high lighthouse. There are two temples of Goddess Mariamma in Kaup. The Jain basadis which are in ruins here are also worth visiting.



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Udupi Circuit

Udupi, an important coastal town in Karnataka is located 381 kms from Bangalore and 60kms from Mangalore. Udupi is an open square surrounded by temples and mutts. Udupi is the birth place of the 12th century saint Madhava, who set up eight sanyasi mutts in the town and is one of Karnataka's most revered pilgrimage sites. The colorful Paryaya festival at Udupi beckons thousands of devotees from all over the country. Udupi District also offers beautiful beaches and back waters for the leisure tourists.

Srikrishna Temple

The famous Krishna temple is located on the north side of the temple square in the heart of the town. It is a celebrated place of pilgrimage especially during the Paraya festival held in the month of January. There is a legend that the Lord Krishna gave darshan to a lower caste devotee Kanakadasa through a small window known as 'Kanakana Kindi'. The temple is set around a large tank, the Madhava Sarovar.

Malpe Beach

Malpe is a natural harbour and an important fishing centre on the Karnataka's coastline. It is Located at about 6 kms to the west of Udupi.

Udupi



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St. Mary's Island

St. Mary's Island can be approached through a boat-ride across the Malpe Harbour. It has a unique formation of volcanic rocks, crystallized into columns and split into vertical hexagonal blocks. This is neither a swimming nor a strolling beach. Legend has it that Vasco da Gama landed here in 1498 on one of these islands.

Marawanthe Beach

Marawanthe is located about 50 Kms from Udupi town. The National Highway (NH – 7) passing through Marawanthe is bordered by the Arabian Sea on one side and the Souparnika River on the other. The beach lies in the backdrop of the Kodachadri Hills. The sky turns crimson and the golden rays of the sun are reflected in the sea as well as the river during sunset. Baindur, a hamlet 45 kms from Marawanthe has a beach too. Ottinane near Baindur is an overhanging cliff and is an ideal place for viewing the sunset.

Karwar Circuit

Karwar located 519 kms north-west of Bangalore is the district headquarters of Uttara Kannada. It is one of the most secluded beaches along Karnataka's 320 km long coastline. The town lies about 15 kms south of the Karnataka-Goa border.

Karwar was an ancient site of sea trade visited by the Arabs, Dutch, Portuguese, French & the British. The British made this place their district headquarters in 1862.

Karwar



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The port is actually a hill which forms five islands, Anjidiv, Kurmagad, Devbagh, Mogral and Shamshigudda. These five islands protect the port from heavy winds. Karwar is rich in flora and fauna as it lies between the sea on one side and Western Ghats on the other. The island has a history of Portuguese occupation and has an old church and ruins of Portuguese settlements.

The important tourist places include:

Gokarna – Om Beach

Narrow streets, traditional houses and temples of Gokarna have become the favourite destinations of many Hindu pilgrims. Locals believe that Gokarna derives its name from a legend in which Lord Shiva emerged from the ear of a cow. Literally meaning ‘cow’s ear,’ this village is formed by the ear-shaped confluence of two rivers.

Adventurous travellers love to visit this coastal town. Om beach, one of Gokarna’s five famed beaches takes the shape of an ‘Om,’ a spiritual Hindu symbol. The other beaches, wedged between gigantic cliffs that protrude like delicate fingers into the sea, are Gokarna, Kudle, Half Moon, and Paradise. Gokarna is a scenic delight with Rocky Mountains and the Western Ghats on one side and the Arabian Sea on the other.

Murudeshwar

The sea is an intrinsic part of the temple scape at Murudeshwar. Surrounding the temple on three sides is a small hill called Kanduka Giri. A huge 15 mts statue of Shiva towers over the town. The statue, which is only a couple of years old, is in a complex which encompasses the 500-year-old Shiva temple.

Murudeshwar has the roaring sea on the west, the towering hills on the east and the coconut and areca groves nearby; the temple attracts a lot of devotees. The temple is covered with Chalukya and Kadamba sculptures in the Dravidian style. There is also a huge fort behind the temple.



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Devbagh

Devbagh is a gentle, secluded island. .From the Karwar coast one can reach the casuarina-whispering island through a speedboat. It’s a place to walk around, laze in a casuarina grove, lie in a hammock, play beach volleyball and swim in the waters.

Kurumgad

Kurumgad Island is a tourist delight located 4km into the Arabian Sea from Karwar and 1km from Devbagh. This tortoise-shaped island, offers a breath taking view of the Arabian Sea. Tourists can enjoy exotic beach walks, nature walks, swimming, fishing, bonfires and barbecues, dolphin spotting, boating rides and snorkeling on this island.

Kurumgad Island can also be reached by traveling in ferry from the Shadhashivgad Boat Jetty located on the backwaters of the River Kali.

Yana

The gigantic rock formations of Yana stand tall among the evergreen forests of the Western Ghats in Uttara Kannada district. It is located 25km from the coastal town of Kumta and 40km from Sirsi near the Chandrika River. Yana is an ideal destination for pilgrims, trekkers, and nature-lovers.A 16km trek through the cool and breezy hills brings tourists to the foot of the mountain where the rock formations begins. A cave temple dedicated to Lord Shiva lies below these shikharas.

The Bhairaveshwara Shikhara and Mohini Shikhara are the ones which make Yana distinct from other regions in the Sahyadri. The taller one, Bhairaveshwara Shikhara is 120 mts and the slightly smaller one Mohini Shikhara is 90 meters from its base. They are of a solid composition of black, crystalline limestone.



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12. Annexure 2: Proposed Cruise Ship Specifications

Detailed list of various specifications related to Cruise Tourism

The technical specifications of the ship are standard and specific to the ship size and

capacity. These should be reviewed by experts and approved by the respective

authorities.

Gross tonnage

Length

Breadth

Draught/ Draft

Passenger capacity

Passenger staterooms

Passenger staterooms, with balconies

Crew capacity

Propulsion

Max. Output power

Speed range

Propellers

Bow thrusters

Fin stabilizer

Fresh water

Steam plant

Waste management

Tender and lifeboats

Infrastructural Facilities at the Port

Tourist Information Centre: Counter for imparting information or providing assistance

to cruise tourist on their arrival to the port. The counter is generally manned by the

State / Central tourism officials



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Excursion facility /Tour operator: City sightseeing and excursion trips to tourist centres

around ports form an integral part of the cruising experience. Provisioning of facility

for organizing these day trips through authorized tour operators

Coach transfer /Shuttle bus service: Coaches or buses dedicated to the cruise terminal.

Used by cruise tourists for specific point transfers from port or for excursions

Trolleys for baggage: Self service trolleys, similar to those available at airports, for

carting heavy luggage from terminal building to taxi / shuttle buses

Terminal Map / Sign Board: A map giving the location details of different facilities

within & outside the terminal building within the port area

Crew Lounge: Resting & comfort area specifically dedicated for crew members of the

cruise

Artifact & Curio Shop: Shop selling antique and local art & handicraft items

Yacht Parking facility: Parking for sail boats & small motor boats for leisure travel

within the harbour area

Laundromat: Self-service laundry facility

Postal service: Cruise tourists prefer to send letters, gifts and specifically picture

postcards (depicting landmark sights of the port / city) to friends & family

Entertainment centre/ Gaming zone: Area for leisure and fun activity provisioned for

cruise tourists during their stay within the port

Gangway: Stairway used between cruise ship and berth for embarkation &

disembarkation

Aerobridge: Bridge extending between the terminal building and the cruise ship to

enable cruise tourists to embark & disembark conveniently

Baggage conveyor system: Automatic conveyor belt within the terminal for luggage

movement from clearance counter to collection by tourists after disembarkation,

similar to airports.

Embarkation Balcony: Public viewing gallery for seeing off embarking passenger or

receiving disembarking passenger.

Ship Chandlering: Activity of provisioning food, water & other supplies on commercial

terms for a ship during its stay at a port.



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Fuel Bunkering: Activity of provisioning fuel & other related supplies on commercial

terms for a ship during its stay at a port.

Pilotage: Pilots are generally called upon, to guide ships from their entry in a harbour

to the berth. They also provide assistance to the ship when it is exiting the port.

Towage: Activity of providing directional assistance to the ship through tug boats,

when it is in the port’s harbour area.

Mooring arrangements: Wire ropes or chains used to hold the ship in place besides

the berth.

Ship Coordination Centre: Command Centre for coordinating with ship from their

arrival to departure and stay within the harbour area at the port.

Information on ships with capacity similar to the proposed capacity in this project

“Easy Cruise Life”



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Name of the Ship Easy Cruise Life

Registered Owner: Easy Cruise Life Ltd. 171, Old Bakery Street.

Valletta, Malta - Reg. No. C-42336

Ship Manager: The management of the ship is contracted to

V Ships (Monaco)

Registry: Malta

Built (place / year): Stocznia Szczecin Shipyard, Poland / 1981

Classification

Society: Lloyds Register



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Cost $380-$675 ( 3-4nights trip)

Passenger Capacity: 462/574

Capacity type:

Qty Cabin Type

1 Premium Suite PS

14 Panoramic Suite RS

6 Suite S

14 Junior Suite SA

28 Deluxe Outside TA, SC, SB

21 Superior Outside TB

36 Standard Outside A

16 Compact Outside B

8 Compact Outside C

46 Premium Inside DA

Capacity

classification

Total 231

Balcony 0

Ocean

View 156

Inside 75

Single 0

Fitness and Leisure:

Pools

Out/In 1/0

Jacuzzis 3

Fitness

Centre Yes

Sauna Yes

Steam No



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Room

Deck

Space Limited

Restaurants:

Main

Dining

Rooms 1

Sittings 0

Non

Smoking Yes

Alternative

Dining 0

Entertainment:

Show

Lounges 1

Cinema No

Library No

Casino Yes

Facilities for

Disabled:

Wheelchair

cabins 2

Lifts 2

Facilities for Children None for children below 14years of age

Crew 120

Technical Specifications

Gross Registered

Tons: 12,711

Net Registered

Tonnage: 4,291

Displacement: 9914

Cruising (service)

Speed: 15.5 Knots



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Maximum Speed: 17.5 Knots

Overall Length: 137.10m

Cruising Range: 5,500 nautical miles

Decks: 9

Passenger Decks: 5

Meeting Room: 140 m²

Easy Cruise One

Table 30: Details of Cruise

Name of the Ship Easy Cruise One

Registered Owner: Easy Cruise (2005-2008) 171, Old Bakery Street.

Valletta, Malta - Reg. No. C-42336

Ship Manager: No Current Operator

Registry: Malta



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Name of the Ship Easy Cruise One

Classification Society: Lloyds Register

Completed: 1990

Cost $100-$300

Passenger Capacity: 232

Cabins 86

Restaurants

Main Dining Room 1

Café 1

Bars 2

Fitness and Leisure

Gym 1

Hot Tub 1

Sauna 1

Spa 1

Computer Room 1

Facilities for Children None

Crew 55

Gross Registered Tons: 4,077

Cruising (service)

Speed: 15.5kts

Overall Length: 289 ft (88 m)

Width 50ft

Decks: 6

Passenger Decks: 5



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71



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13. Annexure: 3 Cruise Circuits (Phase II)

Apart from the above mentioned local circuits, DoT can also consider the National Circuit and International Circuit in cruises as a Phase II development.

National Circuit: The proposed circuits limited to Indian coasts are mentioned below in the table.

Table 31: Proposed National Cruise Circuit in Phase II

Type Circuits

Cruise within India Circuit A: Mangalore-Cochin-Male- Lakshadweep-

Mangalore

Circuit B : Mangalore- Goa- Lakshadweep- Mangalore

Circuit C: Mangalore-Cochin-Male-Mangalore

Circuit A would be a 5-6 days trip. The first port of call Cochin has many attractions like Chinese Fishing Nets, Fort Kochi, St. Francis Church, Fort Kochi, Santa Cruz Basilica, Fort Kochi, backwaters etc. The next destination Male, which is the capital of Maldives, is famous as tourist can shop for handcrafts and visit the national museum. The third destination Lakshadweep is a nature lover’s destination is an ideal retreat for water sports and beaches.

Table 32: Itinerary for Mangalore-Cochin- Male- Lakshadweep-Mangalore Circuit

Day Destination Arrival Departure

First Mangalore - 7:00 PM

Second Cochin 6:00 AM 10:00 PM

Third Male 1:00 PM 10:00 PM

Fourth Lakshadweep 10:00 AM 11:00 PM

Fifth Mangalore 9:00 AM

Circuit B would ideally be a 4-5 days trip and is again rich in attractions suitable for nature lovers. The major tourist attractions of Goa are its beaches which could be combined with Lakshadweep beaches.



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Table 33: Circuit Itinerary for Mangalore- Goa- Lakshdweep- Mangalore Circuit


First Mangalore - 10:00 PM

Second Goa 6:00 AM 9:00 PM

Third Lakshdweep 12 noon -

Fourth Lakshdweep - 9:00 PM

Fifth Mangalore 7:00 AM -

Circuit C would be a 4-5 days trip and the itinerary for the trip would include visit to Cochin and Male excluding Lakshadweep.

International Circuit

The other category of circuits in Phase II of the project is the international route and will be spread over 8-9 days.

Table 34: Proposed International Cruise Circuits in Phase II

Type Circuits

International Cruise A Mangalore-Goa-Mumbai-Dubai-Mangalore

B Mangalore – Cochin – Colombo – Mangalore

Circuit A is designed to cater to both natural scenic locations and shopping needs of the passengers. Goa as mentioned above has all the beautiful beaches and Dubai is known as the “shopping capital” of the Middle East. Shopping districts known locally as Souks are located adjacent to the docks allowing tourists easy access to shopping for the cruise tourists. The entire city is considered one big shopping mall and hence this circuit termed as Shopping Bonanza.

Table 35: Circuit Itinerary for Mangalore-Goa-Mumbai-Dubai Circuit


First Mangalore - 9:00 AM

Second Goa 5:00 PM 9:00 PM

Third Mumbai 8:00 AM 12 noon

Fourth Dubai 9:00 PM -



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Fifth - - -

Sixth - - 10:00 PM

Seventh - - -

Eighth Mumbai 7:00 AM 9:00 AM

Goa 8:00 PM 10:00 PM

Ninth 6:00 AM -

Circuit B offers another great combination of destinations. The attractions of Cochin have been mentioned before. The weather conditions that prevail in Colombo are ideal for the leisure traveler, with many opportunities for shopping and leisure. From Museums, art galleries and Libraries to shopping districts, parks and religious sites, Colombo features a real plethora of tourist attractions.

Table 36: Circuit Itinerary for Mangalore-Cochin-Colombo-Mangalore Circuit


First Mangalore - 8:00 AM

Second Cochin 6:00 PM -

Third - - 8:00 PM

Fourth Colombo 10:00 PM -

Fifth - - -

Sixth - - -

Seventh - - 10:00 PM

Eighth Mangalore 10:00 PM



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14. Annexure: 4 Activities related to Port Call and Ships at Berth

Tourists disembarking for sight seeing / day trip at a port require Shore Passes

Tourists disembarking for longer tours intending to region at another Indian Port require Transit Passes

Immigration Official issue passes to single tourists or as a group on fulfillment of conditions

Baggage clearance of disembarking tourists and declaration of bond stores

Customs formalities may be completed at port or enroute during ships voyage from previous port of call

After tourists receive the Shore pass / Transit pass; the ship agents, tour operators, taxi and coach service providers act to transport the tourists for day trips / to airport / to hotel etc

The DG Shipping Office undertakes check on cruise vessels as with other vessels calling at the port to ensure that the vessel is not in contravention of any international law

Ship chandlers and provision suppliers obtain clearance and meet requirements of vessel

Clearance is given by customs official for supply of provisions

Cruise vessels may collect large amount of garbage during a trip. Ports may cater to the requirement of vessels as a value added service

Cruise tourists embarking into the ship from the port are required to obtain Customs clearance for their baggage

Issue of Shore Pass / Transit

Pass

Customs Clearance of

Baggage / Bond

Ground handling and support

Port State Control Check

Supplies and stores

Disposal of garbage

Baggage clearance of

embarking tourists



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Cruise tourists are required to undergo security checks prior to boarding to ensure overall security of cruise passengers

Local Police / Security agency provides the clearance

After all cruise tourists and crew have boarded the vessel, clearance from customs and port authority is required before the ship can sail

The Pilot finally boards the cruise vessel to escort it safely to deep waters at channel entrance

Security clearance of tourists

Clearance for Sailing

Pilotage and Towage for

berthing



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15. Annexure: 5 Operational Issues with Louis Cruise Lines

Documents

GOVERNMENT OF KARNATAKA INITIATIVEkarnatakatourism.org/policy/cruise_tourism_karnataka.pdfCruise Tourism in Karnataka GOVERNMENT OF KARNATAKA INITIATIVE 2 Table of contents 1. Introduction